Market Growth Becomes More Selective Saudi Arabia’s property market entered the second half of 2026 in a period of recalibration. Long-term fundamentals remain strong, but residential demand is becoming increasingly price- and affordability-sensitive, favouring well-located and correctly priced projects over broad market speculation.  Real estate transaction value reached SAR 112 billion in Q1 2026, up 6.8% year-on-year, while Q2 recorded 53,663 transactions worth SAR 72.3 billion. Residential prices increased 1.3% year-on-year, but financing conditions and affordability are playing a larger role in buyer decisions.  Demand remains structurally supported by population growth, household formation and Saudi Arabia’s homeownership agenda, although buyers are becoming more selective about value, location and end-user demand.  Riyadh Office Market Remains a Standout Riyadh continues to offer one of the strongest commercial property stories. Prime office rents reached SAR 3,320 per sqm in Q2 2026, up 3% year-on-year, while Grade A occupancy remained near full capacity.  Limited high-quality supply, corporate expansion and continued Vision 2030 investment are supporting office demand. Broader opportunities are also emerging across hospitality, logistics, industrial, mixed-use and infrastructure-linked assets, supported by tourism development, economic diversification and major construction activity.  Outlook Saudi Arabia remains a positive long-term growth market, but investment is shifting toward a more fundamentals-driven approach. Riyadh is likely to remain the strongest opportunity, while investors should prioritise location, tenant or end-user demand, cash flow visibility and development execution. Affordability pressure, financing conditions and differences between prime and secondary locations remain key risks, reinforcing the need for a selective rather than broad-based investment strategy. The contents of this article were contributed by Shareef Ghaleb Kattan, Head of IQI Saudi Arabia. Download to see insights from other country marketsDownload

Residential Recovery Moves Into Clearer View The Philippine property market is showing stronger signs of recovery, led by a sharp improvement in residential absorption. In Metro Manila, preselling net take-up surged 765% year-on-year in Q1 2026, driven mainly by the economic and affordable segments. As a result, remaining inventory life fell to 6.8 years, down from a peak of 13.4 years in mid-2025.  Developers are now prioritising the clearance of ready-for-occupancy stock before launching new projects, while completions are expected to decline from 2027 onward. Vacancy is still projected to reach 25.6% by year-end, but this largely reflects earlier supply decisions rather than current demand conditions.  Demand also remains healthy in well-priced fringe locations such as the C5 Corridor and Katipunan, reinforcing the importance of the right combination of product, location and pricing.  Commercial and Industrial Demand Adds Depth The recovery is also being supported by stronger commercial demand. The Philippines is ranked as the world’s second-largest GCC delivery location, with the GCC workforce projected to reach around 289,000 professionals across approximately 200 centres in 2026. This is supporting demand for prime CBD offices and key provincial markets.  Tourism has also improved, with 3.16 million international arrivals in H1 2026, up 5.4%, while hotel average daily rates rose 2.4%. Industrial remains another strong segment, supported by new logistics supply and PHP 81.4 billion in approved foreign manufacturing pledges.  Outlook The Philippines appears to be entering a confirmed recovery phase, but opportunities remain selective. With buyer-friendly pricing gradually being absorbed and future supply becoming more constrained, well-located residential, office and industrial assets may benefit most as the market continues to improve. The contents of this article were contributed by Dara Ko-Saavedra, Head of IQI Philippines. Download to see insights from other country marketsDownload

Asia Pacific Defies Global Expectations The global economy has remained more resilient than expected in 2026 despite persistent inflation and elevated energy prices. The IMF projects global growth of 3.0% in 2026, rising to 3.4% in 2027, while Southeast Asia’s five largest emerging economies are expected to grow 4.1% this year.  Asia Pacific is performing particularly strongly. CBRE raised its 2026 regional growth forecast from 3.9% to 4.3%, supported by demand for AI-related products and semiconductors. Commercial real estate investment across the region also increased 27% in the first half of 2026, despite higher interest rates in several markets.  Property investment momentum remains robust. JLL recorded US$47 billion in Asia Pacific property investment in Q1 2026, the strongest first quarter on record, followed by a second quarter in which investment rose 38% year-on-year.  Property and Gold Remain Key Portfolio Anchors Rental returns continue to support the investment case for selected property markets. Gross rental yields were approximately 5.3% in Malaysia, 6.5% in Thailand, 7.9% in Turkey and 8.2% in Indonesia, highlighting the income potential available across different markets.  Gold also remains a defensive asset, trading around US$4,315 per ounce in mid-September, roughly 18% higher than a year earlier.  Outlook Asia Pacific’s resilience is increasingly visible in both economic and property-market data. For investors, the focus remains on maintaining liquidity, preserving stability through diversification and selecting property with strong fundamentals. Southeast Asia and Turkey continue to stand out for their combination of growth, rental income and long-term investment potential.  The contents of this article were contributed by Hamid R. Azarmi, Head of Business Development. Download to see insights from other country marketsDownload